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JPMorgan Chase CEO Jamie Dimon has warned the U.S. economy is facing "considerable turbulence" amid Donald Trump's tariff move and trade war with China.
However, America's largest bank reported a rise in profits for the first quarter of 2025 by 9 per cent to $14.6 billion.
"The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and 'trade wars', ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility," Dimon said.
"As always, we hope for the best but prepare the Firm for a wide range of scenarios."
Why It Matters
Trump announced sweeping tariffs on countries around the world on April 3, triggering market chaos. On Wednesday, following huge losses worldwide, the president suspended for 90 days the import taxes that had come into effect barely 13 hours earlier.
However, he escalated his trade war with China. Beijing now faces 145% import taxes. China has retaliated by imposing 125% tariffs on all U.S. imports. Markets have continued to plunge.
What to Know
On Wednesday, Dimon said the trade war would probably lead to a recession and defaults by borrowers.
"So long as you have rates going up … inflation is sticky and credit spreads are gapping out, which they're going to, I think you'll see more credit problems," Dimon, one of Wall Street's most influential figures, told Fox Business' Mornings with Maria.
JPMorgan's earnings per share rose to $5.07 per share from $4.44 a year ago.
Total managed revenue surged to $46 billion, up from $41.9 billion last year and well ahead of the $44 billion that Wall Street had been bracing for, according to FactSet.
JPMorgan's trading desk thrived in the first three months of 2025, helped by the market's volatility.
The bank's markets revenue rose 21% in the period, with equities revenue up 48% from a year ago.
What People Are Saying
Wells Fargo also reported early Friday, with the San Francisco bank posting first-quarter net income of $4.89 billion, or $1.39 per share.
In a statement, CEO Charles Scharf said: "We support the administration's willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions," adding that the bank is "prepared for a slower economic environment in 2025."
The trade war between the U.S. and China "could severely damage the global economic outlook," the head of the WTO, Ngozi Okonjo-Iweala, said earlier this week.
What Happens Next
White House officials hope the import taxes will create more manufacturing jobs by bringing production back to the United States—a politically risky trade-off that could take years to materialize, if at all. Meanwhile, market volatility is expected to continue through Friday.
This article includes reporting from The Associated Press.
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